The Airport Authority Hong Kong (AA) has announced the launch of HK$5bn (US$640m) Hong Kong International Airport retail bonds.
Only members of the public with valid Hong Kong identity cards are eligible to subscribe for the bonds through appointed placing banks, the Hong Kong Securities Clearing Company or designated securities brokers.
The bonds have a tenor of 2.5 years and an interest rate of 4.25% per annum, payable every three months in arrears. Investors can submit an early redemption request by the specific deadlines to require the AA to redeem some or all of the bonds at 100% of their principal amount, together with accrued and unpaid interest to (but excluding) the date of redemption.
The bonds’ subscription period will run from 9:00am on January 17, 2024, to 2:00pm on January 25, 2024. The bonds will then be issued on February 5, 2024, and listed on the Hong Kong Stock Exchange on the following business day. The AA has appointed 10 banks to act as market makers for the bonds. The market makers are appointed to try to maintain a market in the bonds in over-the-counter transactions for retail investors.
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